Success Stories in the Manufacturing Sector
Success Story 1: Moving to a cell based production approach
Problems with flow in client organization affected production and led to large buildup of inventory between processes. The value stream was steamlined and flow improved. The concept of planned flexing was introduced into the operatiions so that production can be easily ramped up or reduced as demand fluctuates. WIP inventory was cut by about 1/3 almost immediately.
Success Story 2: More effective Materials Management
The client organisation had difficulties around materials management and supply chain. production was often affected by unavailability of raw materials or insufficient amount of materials. Sometimes there was too much of the material that was not required, and too little of those that were required. Having enough of the right materials at the right time was emphasized. Policies were modified to meet the clients requirements. The result was a savings in raw material exceeding $1 mil.
Success Story 3: Installing a Supermarket Pull System
The client’s was doing push production. There were frequent interruptions to production. Internal on-time delivery was deteriorating, Work load would be much heavier at the end of the week than at the beginning of the week. A pull system was put in place so that kanban signals would be sent only when the material was needed. The total reduction in WIP inventory exceeded $1mil after 3 months.
Success Story 4: Lean Supply Chain
The client purchased sub-assemblies from several vendors. There was little co-ordination with the vendors when to replenish the sub-assemblies. There inventory levels of these sub-assemblies were too high because of just in case inventory. A kanban pull system was setup so that additional sub-assemblies were replenished and in the right amounts only when these sub-assemblies were consumed. The inventory levels dropped overnight and there was a cash savings exceeding $250k.